THE POLITICS OF OIL AND OTHER NRS Working to achieve the best Dickens Kamugisha BUDONGO SUB COUNTY-MASINDI DISTRICT 1

What is the politics of oil governance? Nature:- the status, ownership, control and access to the oil and natural resources Wealth:- the distribution of wealth from the resource across the resource chain. Power:- the power relations among the stakeholders and how each of these stakeholders use their power to influence the resource and the distribution of wealth accruing from its distribution. 2

Natural Resources Wealth: Who Benefits from Natural Resources? Case of Forestry: 3

POWER In natural resources dependent communities, political power determines access to natural resources and vice versa. Building a robust democracy must start with democratizing decision-making over natural resources. Who benefits from oil will directly be determined buy how much political power each stakeholder posseses. OIL CAN BE THE PRICE FOR FREEDOM 4

The Resource Curse? The “resource curse” refers to the inverse association between growth and natural resource abundance, especially minerals and oil abundance. 5

The oil/polity paradox 6

Rentier State and Regimes Oil is associated with authoritarian rule* Of the 20 major exporters in 2000, only Mexico and Venezuela are democracies, and both have experienced prolonged periods of authoritarian rule. Oil hinders democracy Oil breaks the link between taxation and state-building Spending on patronage weakens pressures *Karl, Paradox of plenty 7

Oil and Debt Mineral exporters incur debt more suddenly and rapidly than most other borrowers, with debt servicing mounting for an increasing percentage of the their GDP; Six of the world’s most oil-dependent countries rank among the WB’s most “highly indebted poor countries.” Six of the top ten most indebted African countries are major oil exporters. Two of the top four indebted Latin American countries are major oil exporters. World Development Indicators,

Oil Breeds Grievances Dependence on oil is robustly associated with grounds for grievances, especially at the regional and local level. o Influx of migrants, often from other countries, ethnic groups or regions, who seek oil related jobs, cause resentment. o Oil rich areas suffer from increased prostitution, sexually transmitted diseases, crime, land conflicts, high costs of living, etc. o Oil exploration, extraction and transportation cause severe environmental destruction, including: o Pollution of villages, their water sources, and air o Devastation of farmland, fishing and biodiversity areas o Diminish the scope and value of key ecosystem services 9

Militarization of Oil Exporting Countries Oil dependence is closely associated with military spending and the creation of vast repressive apparatuses As a group, oil exporters spend much more money and a greater percentage of their revenues on their military and security forces than do non-mineral dependent countries Karl, Encyclopedia of Energy 10

Oil Wealth inhibits the transition to democracy o Dictators care about longevity and income o Higher national income (a) reduces the supply of freedom, but (b) increases the demand for freedom, only if human capital is the source of development o Oil wealth induces dictators to raise the size of political entry barriers in order to prevent entry 11

Recent Civil Wars in Oil Dependent State Algeria Angola Chad (Renewed) Colombia1984-Present Republic of Congo Indonesia (Aceh)1986-Present Iraq , 1985-Present Nigeria , ,(Present) Sudan1983-Present Yemen ,

Who Can Create a Balance of Power? Members of Parliament? Local Governments? Civil Society? Citizens? The struggle for ownership, control and access to natural resources is a continuing struggle. 13

Its only power that you need Where do you get power? What are you doing with your power? Lets continue working together for the good of our country. THANK YOU LADIES AND GENTS 14